Los Angeles daily herald., 1887-06-16
COMMERCE BILL.
Exhaustive Report by the
Commissioners.
SOME IMPORTANT DECISIONS,
Fourth Clause Held Subject to
Controlling Conditions, but
Generally Sustained.

Generally Sustained.
r Associated Press Dispatches to the HERALl
Il WASHINGTON, June 1.-THE Int,
, State Commerce rendered tonight it
long expected decision upon the fourtl
: section of the Interstate Commerc
Act, which prohibits greater charg
for transportation of passengers an,
property over shorter than longer dis
tances in the same direction, under sub
stantially similar circumstances ant
conditions. The decision was mad,
upon the petition of the Louisville ant
Nashville and other railroad companies
which were among the first to apply fol
relief from the operation of the first
section of the law. The decision is very
long, comprising more than Is, 900 words,
but the most important feature is the an.
nouncsment that the Commission, after
mature consideration, is satisfied that
the statute does not require it
to prescribe in every instance
of an exceptional case and grant its or.
der for relief, before the carrier is at
liberty in its tariffs to depart from the
general rule. The carrier must judge
for itself what are substantially the sim.
liar circumstances and conditions which
preclude the special rate, rebate or draw.
back which is made unlawful by section
d and section A since no tribunal is en-
powered to Judge for it until after the
carrier has acted, and then only for the
purpose of determining whether its &C.
tion constitutes violation of the law
which each carrier judges on the
peril of consequences; but the
special rate rebate or drawback
which it grants is not illegal when it
turns out that circumstances and condi-
tions are not such as to forbid it, and as
Congress clearly intended this. it must
also when using the same words in the
fourth section have intended, that the
carrier whose private privileges was in
the same way limited by them, would
in the same way act upon its judgment
of limiting circumstances aud conditions.
NO ABSOLUTE DECISION.
The Commission therefore will not un-
dertake to decide in advance what con.
stitutes or what does not constitute dis
elimination under substantially similar
circumstances and conditions, but
will leave the railroada compan.
les in fixing their tariffs to act
upon their own judgment and at their
own risk, subject to accountability be-
fore the Commission and courts, in the
cases where complaint is made by inter-
ested parties of violation of the law.
For the guidance, however. of railroad
companies the Commission, in its decis-
ion, has considered at great length near
ly every question raised under the fourth
section of the law and has reached con-
clusions which are summarized as fol-
lows.
POINTS DECIDED.
|. Prohibition in the fourth section
against q greater charge for shorter
than for longer distance over the same
line in the same direction, the shorter
being included within the longer distance
as qualified therein, is limited to cases
in which circumstances and conditions
are substantially similar.
- 1uO PuIhnC, oApotoubtdily
similar circumstances and conditions"
in the fourth section, is used in the same
sense as in the other section, and under
the qualified form of prohibition in the
fourth section carriers are required to
Judge in the first instance with regard to
the similarity or dissimilarity of the cir
cumstances and conditions that forbid or
permit greater charge for shorter dis.
tance.
3 The judgment of carriers respect.
ing circumstances and conditions is not
final but subject to authority of the
Commission and courts to decide wheth.
whether the statute has been violated
and in case of complaint for any violation
of the fourth act the burden of the
proof of carrier, is to jus tify any de.
parture from the general rule prescribed
by the statute, by showing circumstan-
ces and conditions to be substantially
dissimilar.
4. Provisions of section One requir.
ing charges to be reasonable for just,
and of section two forbidding unjust
discrimination, apply when exceptional
charges are made under section four as
they do in other cases.
s. The existence OF actual competition,
which is controlling force in respect to
traffic. is important in the amount they
may make out of dissimilar circum-
stances and conditions emitting car
rier to charge less for longer than for
shorter hauls over the same line in the
same direction, the shorter being in
cluded in the longer, and in the follow
ing cases:
One-When in competition with carr
iers by water, which are not subject to
the provisions of the statute.
Two-When in competition with for
eign or other railroads which are not
subject to the provisions of the statute.
Three. In rare and peculiar cases of
competition between railroads which are
subject to the statute, when strict ap.
plication of the general rule Of the
statute would be destructive of competi.
tion. 7a. a,7 .a7T,
LOCAL TRAFFIC CHARGES. .5
The Commission further decided that
when greater charge in the aggregate
lie made for transportation for passengers
or like kind of property, for shorter
than for longer distance, over the same
line in the same direction, the shorter
being included in the longer dis
tance, it is not sufficient justifica-
tion therefore that the traffic which
is subjected to such greater charge, is
way or local traffic, and which is given
more favorable rates, is not nor is it suf-
ficient justification for such greater
charge, that the short haul traffic is
more expensive to the carrier. unless
when circumstances (such as make it ex-
ceptionally expensive, or the long haul
traffic exceptionally expensive, the diff
ference being extraordinary and sus-
ceptible of proof, show that the lesser
charge on longer haul is merely con-
tinuation of the favorable rates under
which the trade centers or industrial
establishments have been built up. The